Bombs Away Video Games Corporation has forecasted the following monthly sales: January February March $ 117,000 July 110.000 August 42.000 September 42.000 October 37.000 November 52.000 December Total annual sales = $900.000 $ 62.000 62.000 72.000 102.000 122.000 140.000 April May June Bombs Away Video Games sells the popular Strafe and Capture video game. It sells for $5 per unit and costs $2 per unit to produce. A level production policy is followed. Each month's production is equal to annual sales in units) divided by 12. Of each month's sales, 20 percent are for cash and 80 percent are on account. All accounts receivable are collected in the month after the sale is made. a. Construct a monthly production and inventory schedule in units. Beginning inventory in January is 42.000 units Ending Inventory 34,600 January February March April May Bombs Away Video Games Corporation Production and Inventory Schedule in Units Beginning Production - Inventory - Sales 42,000 16,000 23,400 16,000 22,000 16,000 8,4001 16,000 8,400 16.000 7,400 16.000 10.400 12,400 12,400 14.400 20,400 24,400 28.000 June July August September October November December b. Prepare a monthly schedule of cash receipts. Sales in December before the planning year are $100,000. Bombs Away Video Games Corporation Cash Receipts Schedule February March April January May June Sales Cash receipts: Cash sales Prior month's credit sales Total cash receipts $ 0S 0S 0S 0S 0S 0 Bombs Away Video Games Corporation Cash Receipts Schedule August September October July November December Sales Cash receipts: Cash sales Prior month's credit sales Total cash receipts